At the closing bell of the day trade, benchmark indices fell sharply indicating the Budget has failed to boost the investor confidence.
BSE’s Sensex fell 394.67 points to settle at 39,513.39 points and Nifty of the National stock Exchange (NSE) fell below 11,900 to reach 11,811.20 after Budget was presented by the Finance Minister in the Parliament on Friday. It is said that about two shares declined for every share rising on the Bombay Stock Exchange.
The Public Sector Banks (PSB) have gained after the budget allocated 70,000 crore for recapitalization of PSBs. Indiabulls Housing, IndusInd Bank, Kotak Mahindra Bank and State Bank of India gained between 1 to 3 percent.
While NTPC, UPL, M&M, Vedanta and Yes Bank were the biggest losers among the Nifty stocks. Of the Nifty50 index- Escorts, Adani Enterprises, Jain Irrigation, Allahabad Bank, BEL, DLF and InterGlobe Aviation fell sharply while ICICI Prudential gained a percent.
Markets witnessed heavy selling in metal, power, auto and IT sectors after the budget proposal of raising public stockholding allegedly raised concerns about liquidity in the market.
In a major relief to options traders the Securities transaction tax has been rationalized to be imposed only on the difference of strike price and market price instead of the entire value of contract.